And now, I’d like to turn the call over to Patricia Chou. Patricia.
Thank you for participating in Actions’ earnings conference call. We appreciate your continued interest in Actions. I will provide a business update and discuss financial results for the second quarter of 2011. As well as expectations for future performance.Niccolo will be available during the Q& A portion of the call where I will translate from Mandarin to English on his behalf.First, I would like to comment on the press release issued today announcing the CFO transition. Effective August 31st, I will be stepping down and Nigel Liu will be promoted to the job of CFO. Nigel has been with Actions since 2007 in several finance-related functions. The Board of Directors and the management team are confident that his experience will provide a seamless transition for the position. I have enjoyed my nearly five-year tenure with the company. And I continue to be optimistic about Actions long-term growth prospects. I will remain an adviser to the company following my departure.Now, moving on to our financial results for the second quarter. As a reminder, our financials are reported in accordance with U.S. GAAP. For the second quarter that ended June 30th, 2011, we reported a revenue of $10.5 million compared to $9.4 million in the first quarter of 2011. Our gross margin for the second quarter was 37.9% compared to 39.1% for the prior quarter. This slight decline in gross margin was mainly due to the higher volume of lower margin products sold. For the second quarter, total stock-based compensation was $27 million compared to an expense in the first quarter of $0.6 million. R&D expense was $5.6 million or 53.4% of revenue for the second quarter compared to $5.1 million in the first quarter. We anticipate our R&D expense to continue to represent a high percentage of revenue as we increase R&D talent to focus on our diversified product development initiatives. In addition, we are focusing more than half of our R&D resources in high-end new product development.
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